OREANDA-NEWS. StemCells, Inc. (NASDAQ:STEM) today announced that it has closed its previously announced offering of common stock and warrants. The Company sold a total of 26,667,000 shares of common stock, Series A warrants to purchase up to 13,333,500 shares of the Company’s common stock, and Series B warrants to purchase up to 20,000,250 shares of the Company’s common stock, at a public offering price of approximately $8 million. In addition, pursuant to the underwriters’ over-allotment option, the Company issued additional Series A warrants to purchase up to an additional 1,997,665 shares of common stock and additional Series B warrants to purchase up to an additional 2,996,497 shares of common stock. The Company received total proceeds, net of offering expenses, underwriting discounts and commissions, of approximately $7.4 million. The Series A warrants have an initial exercise price of $0.30 per share, are exercisable immediately, and will expire two years from the date of issuance. The Series B warrants have an initial exercise price of $0.42 per share, are exercisable 12 months from the date of issuance, provided that the Company has sufficient authorized capital to allow all of the Series B Warrants to be exercised in full by the holders, and will expire on the fifth anniversary of the date they become exercisable. The Company plans to file a registration statement to cover the common stock underlying the Series B warrants upon the 12-month anniversary of the issuance of the Series B warrants. If the warrants are exercised in full, StemCells, Inc. will receive additional proceeds of approximately $14.3 million.

"Despite extremely challenging capital markets, we were very pleased to have raised this necessary capital to continue to move our Phase II Pathway™ Study forward for cervical spinal cord injury,” said Ian Massey Chief Executive Officer of StemCells, Inc. “We remain very excited by the early data we’ve seen in our spinal cord injury program and are focusing all of our efforts to complete enrollment in our ongoing Phase II study in cervical spinal cord injury (Pathway) this year with final results available next year. Positive efficacy data from the Pathway study will be truly transformative for the Company.”

Greg Schiffman, Chief Financial Officer of StemCells, Inc. said, "This transaction was structured to include short-term warrants, which provide the potential for the Company to receive approximately $4 million in additional capital over the next two years. This is a critical timeframe for the Company as we expect to have final results from our ongoing Pathway study in the fourth quarter of 2017. The Company is also actively pursuing non-dilutive sources of capital, which if successful, will allow us to place less reliance on the equity markets to provide the cash required to complete this Phase II program."

Maxim Group LLC is acting as sole book-running manager and Chardan Capital Markets is acting as co-manager for the offering.  Ascendiant Capital Markets, LLC is acting as financial advisor to the Company.